Svedbergs Group (SVED) Q3 2024 earnings summary

Executive summary

• Net sales in Q3 2024 increased by 19% year-over-year to SEK 512 million, driven by the acquisition of Thebalux and strong performance in Roper Rhodes and Macro Design.

• EBITA for Q3 rose to SEK 71 million (13.9% margin), supported by Thebalux acquisition and strong Roper Rhodes performance.

• Thebalux is now fully integrated, advancing sustainability initiatives and renewable energy targets.

• Free cash flow in Q3 was -2 MSEK, mainly due to increased working capital.

• Thebalux acquisition and cost control contributed to improved profitability.

Financial highlights

• Q3 net sales: SEK 512 million (432), up 19% year-over-year; organic growth -1%, acquisition impact +22%, FX -2%.

• YTD net sales: SEK 1,646 million (1,363), up 21% year-over-year; organic growth -2%, acquisition impact +22%, FX +1%.

• Q3 EBITA: SEK 71 million (59), EBITA margin 13.9% (13.7%).

• Free cash flow Q3: SEK -2.4m (29.2); YTD: SEK 51m (119).

• Net debt: SEK 792m; equity ratio: 48%.

Outlook and guidance

• Focus on launching new products, improving customer service, and profitable growth.

• Continued strategic initiatives and cost control to address challenging Nordic markets.

• Ongoing evaluation of potential acquisitions and investments in production capacity in the Netherlands.

• Roper Rhodes expected to reach full earn-out; payment in Q1 2025.